Corporate Level Marketing Strategies of Nestle: A Detailed Report

Verified

Added on  2022/11/28

|28
|6727
|105
Report
AI Summary
This report provides a comprehensive analysis of Nestle's corporate-level marketing strategies. It begins with an overview of Nestle's business and its diverse product portfolio, followed by an exploration of its marketing strategies using the 8 Ps framework. The report then delves into the macro and micro environmental analysis of Nestle, employing tools such as PESTEL and Porter's 5 Forces to assess external factors and competitive dynamics. A SWOT analysis is conducted to evaluate internal strengths, weaknesses, opportunities, and threats. The value chain analysis examines Nestle's internal activities, including inbound logistics, operations, outbound logistics, marketing and sales, and services. Stakeholder management is also considered. The report further analyzes Nestle's marketing strategies using the Ansoff Matrix and Porter's Generic Competitive Strategies to understand its growth and competitive positioning. Finally, a suitability model is used to evaluate the effectiveness of these strategies. The report concludes with a summary of the key findings and insights into Nestle's marketing approach.
tabler-icon-diamond-filled.svg

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
Running head: MARKETING STRATEGIES OF NESTLE
Marketing Strategies of Nestle
Name of the Student
Name of the University
Author Note
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
1MARKETING STRATEGIES OF NESTLE
Table of Contents
Background......................................................................................................................................3
1. Overview of Nestle’s Corporate Marketing Strategies............................................................3
2. Evaluation of Corporate Level Marketing Strategies of Nestle...............................................6
2.1. Macro Environment Analysis...........................................................................................6
2.1.1. PESTEL Analysis of Nestle..........................................................................................6
2.1.2. Porter’s 5 Forces Analysis.............................................................................................7
2.2. Micro Environment Analysis............................................................................................9
2.2.1. SWOT Analysis of Nestle.............................................................................................9
2.3. Value Chain Analysis of Nestle Marketing Strategies....................................................10
2.3.1. Inbound Logistics........................................................................................................10
2.3.2. Operations...................................................................................................................11
2.3.3. Outbound Logistics.....................................................................................................11
2.3.4. Marketing and Sales....................................................................................................12
2.3.5. Services.......................................................................................................................12
2.4. Stakeholder Management for Nestle...............................................................................13
2.5. Analysis of Nestle Marketing Strategies using ANSOFF Matrix...................................13
2.6. Analysis of Nestle’s Marketing Strategies using Porter’s Generic Competitive
Strategies....................................................................................................................................15
Document Page
2MARKETING STRATEGIES OF NESTLE
2.7. Using the Suitability Model to Understand the Success of Nestle’s Corporate Level
Marketing Strategies......................................................................................................................18
Conclusion.....................................................................................................................................20
References......................................................................................................................................21
Document Page
3MARKETING STRATEGIES OF NESTLE
Background
Nestle is a multinational food and beverage company that has its headquarters in the
country of Switzerland. Nestle is renowned for the high quality processing methods that it
utilizes in order to manufacture and launch its products in the market. In terms of revenue as well
as other metrics, Nestle is considered to be the largest company dealing in food and beverage
products in the whole world (Moses and Ambrose 2018). Some of the well- known products that
are manufactured by Nestle include breakfast cereals, bottled water, medical food, baby food, a
variety of dairy products, confectionary, coffee and tea, pet foods, frozen food, snacks and ice
cream. This report enters into a discussion about the corporate marketing strategies of Nestle and
assesses the suitability of such strategies (Moses and Ambrose 2018). For this purpose, the report
engages in macro and micro environmental analysis of Nestle, followed by value chain analysis
and stakeholder mapping. Thereafter the report will me describe and analyze the main corporate
level strategies of Nestle using tools such as Porter’s generic strategy options and Ansoff Matrix.
The strategies will then be evaluated using a suitability model, analyzing how the strategies
match the remote and operating environments, stakeholder expectations and capabilities.
1. Overview of Nestle’s Corporate Marketing Strategies
This section provides a detailed overview of the corporate level marketing strategies of
Nestle as undertaken in the last ten to fifteen years, by using the model of 8 P’s,
Product – The Nestle Company engages in the manufacture of a diverse range of products along
with line extensions and that too in the global marketplace. Both quality and variety is what
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
4MARKETING STRATEGIES OF NESTLE
Nestle is well known for among its customers, with some of the top brands that are associated
with Nestle being Kit Kat, Nescafe, Nestea and Maggie (Nestle 2017)
Place – Nestle products are usually displayed in malls and supermarkets in major cities and
towns of the world and are also available for sale online. Apart from launching and selling its
products through malls and through super markets, Nestle is a company that also places its
products in college canteens, company canteens and pantries, hospitals as well as in public places
for wide-scale consumption by customers who are young and old, alike (Grant 2012).
Price – The price of Nestle products is something that is dependent on the type and character of
the markets in which these products are being sold. Maggie and Nescafe for instance are Nestle
products that are priced with gross profits that are far higher for the company than that of its
competitors. One reason for this is the fact that the quality of Nestle products is quite high and
skimming prices is something that will likely induce the decision on the part of customers to
switch brands. Pricing intensity level with regard to Nestle is something that stems from the
consumption or the packaging of the product based on pricing (Thompson and Martin 2010).
Promotion – Nestle is a company that is quite well known for its promotional activities. The
Nescafe tune is for instance one of the most widely known product tunes in the world, a tune
associated with an advertising campaign for Nescafe that was launched at least twenty years ago,
or more and which is considered to be one of the finest advertising campaigns until date. The
advertising campaigns of Maggi have been quite innovative and witty. The Take a Break
advertising campaign associated with the Nestle product Kit Kat as well as the website of Kit Kat
is quite innovative in its nature and scope (Nestle 2017).
Document Page
5MARKETING STRATEGIES OF NESTLE
People – Nestle recruits hundreds and thousands of people all over the world and all around the
year. Training and development is something that Nestle employees are subjected to on a regular
basis, which puts them in a position to better understand handle the queries of customers while
providing better customer service at the same given time (Morschett et al. 2015).
Physical Evidence – Better evidence connectivity is being created by Nestle in the various
countries of the globe where it has a business presence. One way this is being done is through the
creation of coffee counters where the vending machines have a Nescafe logo imprinted on them
(Mintzberg et al. 1999).
Process – The Nestle products are manufactured and processed through the use of the best and
the most advanced technology. For instance, Nestle has come up with its very own vending
machine to cater to customers who like to drink Nescafe coffee on a regular basis (Bharucha
2016).
Positioning – The Nestle brand is one that has grown at a tremendous pace and it has managed to
position its products quite uniquely in the market, as a result of which Nestle products have done
so well. Products are diversified on a regular basis in order to cater the diverse range of the
company’s target audience. Baby food is often packaged in beautifully designed containers in
order to appeal to customers. Image, channel, people, service and product differentiation is
something that the company takes recourse to as often as possible in order to position its
products well enough in the market and make these eligible for purchase by customers in large
numbers (Nestle 2019).
Document Page
6MARKETING STRATEGIES OF NESTLE
2. Evaluation of Corporate Level Marketing Strategies of Nestle
2.1. Macro Environment Analysis
2.1.1. PESTEL Analysis of Nestle
The general environment related analysis plays a major role which helps in influencing the
overall industry and indirectly the different firms such as economic, demographic, social,
environmental, and the political aspects. As argued by Bharadwaj et al (2015), these are the
different structured segments which are the external factors to the firm and the main
challenge which can be faced by the firm is to scan and monitor and assessing the different
factors which are of huge importance. These are the different efforts which will be resulting in
the proper recognition of the different environmental opportunities and challenges which will be
affecting the trends and opportunities and weaknesses which can be faced by the firms.
Political/Legal Aspects- It is the first and foremost aspect in which it can be seen that the
political factors are the most essential factor in the food and beverage industry and the different
policies of the company and the overall budget is affected (Demirel and Kesidou 2019). Michael
et al. (2017) state that the Nestle Company helps in providing the assurance related to food
to the different customers which is produced by Nestle and they are being imported and
distributed under strict hygiene and sanitary related conditions. .
Socio-Cultural Aspects - Proper diet as well as adequate supply of the food are the two major
aspects which falls under the socio-cultural segment and the main and central aim of the
company is to promote the health and wellbeing of the customers (Meyer, Neck and Meeks
2017). As argued by Noe et al. (2017), in the present scenario, the different customers in the
market prefer the healthy food instead of the junk food which are being sold and it helps
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
7MARKETING STRATEGIES OF NESTLE
Nestle in guaranteeing that the healthy food are being sold to the customers (Noe et al.
2017).
Technological Aspects- Wang and Rajagopalan (2015), point out that in case of Nestle,
technology helps the company in increasing the share in the market and the company can
be using this as the competitive advantage to benefit the customers through the
incorporation of the technological aspects while promoting the products in the market.
Global Aspects- David and David (2017) argue that Nestle can improve the operational
related efficiency through proper integration of the businesses of the company on a global
state. The company is transitioning the business activities appropriately and it will be
enhancing their growth aspects in a positive manner.
2.1.2. Porter’s 5 Forces Analysis
Competitive Rivalry – The consumer food and beverage industry in which Nestle is seen to run
its operations is one that is characterized by intense competition. As stated by Bharucha (2016),
some of the major competitors for a company like Nestle include Group Danone, P & G
and Kraft Food. With regard to specific products like Breakfast Cereal, an important
competitor for Nestle is the Kellog’s Company. Even though Nestle has been in the market
for 150 years, it is still faced with a lot of competition from existing and new companies that
engage in the manufacture of products similar to what is manufactured by Nestle. The
competitive rivalry for a company like Nestle is therefore quite high.
Supplier Power – Since the largest market-share in the food and beverage industry is held by
Nestle, it requires supplies not just in small quantity but massive quantity. As a result,
Bharucha (2016) states that Nestle is considered to be what may be termed as an ideal
Document Page
8MARKETING STRATEGIES OF NESTLE
buyer for all types of suppliers. Any supplier company that enters into operations with
Nestle, will be careful enough not to bargain too much over supply prices or act high
handed in this respect, as Nestle can always choose another supplier to meet its supply
requirements.
Buyer Power In the view of Ambrose and Moses (2018), there are many companies that
sell products which are similar to the products that are manufactured by Nestle, which is
why it will never be difficult for customers to switch from Nestle to another company,
whenever they need to make a purchase. As a result, the buyer power for a company like
Nestle is quite high.
Threat of Substitution As argued by Avery and Zaltoman (2019), a number of products
that are manufactured by Nestle such as pasteurized milk and bottled water have
substitutes in the market, which are not only affordably priced but which are readily
available as well. Allegations have also been made in recent times that the standards
deployed by Nestle for the manufacture of some of its products are not up to the mark,
making such standards unhealthy for human consumption. What this has resulted in, in
turn is the high rate of the sale of substitutes among people who are conscious of their
health and wellbeing. The threat of substitution for a company like Nestle is therefore very
high.
Threat of New Entry – The food industry is one that is growing increasingly diverse with every
passing day. As a result, conditions are becoming quite tough for the operations of new entrants.
Plenty of entry barriers need to be overcome, with many existing players holding large market
shares. Most of the existing players are also quite well-experienced and have a perfect
Document Page
9MARKETING STRATEGIES OF NESTLE
understanding of the needs and requirements of customers. According to Avery and Zaltman
(2019), the threat of new entry for a company like Nestle is therefore quite low.
Source - https://marketrealist.com/2016/02/porters-5-forces-ksu-position-in-the-us-freight-rail-
industry/
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
10MARKETING STRATEGIES OF NESTLE
2.2. Micro Environment Analysis
2.2.1. SWOT Analysis of Nestle
Strengths According to Bharucha (2016), Nestle is a company that has unmatched
research as well as development capability. The geographic presence of Nestle is quite
strong, with most of the revenue sources of Nestle being geographically quite diversified.
The brand portfolio and the product portfolio of Nestle are unrivalled. Nestle also owns
some of the most well recognized of brands across the globe and it is a company that is
looked up to by enterprises around the world because of the efforts and initiatives that it
takes in the area of environmental sustainability.
Weaknesses Ambrose and Moses (2018), argue that contaminated food recalls is a
challenge that the Nestle Company has been faced with in recent times. The company has
also been at the receiving end of a lot of criticism owing to its excessively high use of water,
for allowing the practice of forced child labor, for engaging in anti-unionism activities in
addition to other types of unethical activities.
Opportunities It is argued by Avery and Zaltman (2019), that some of the opportunities
that Nestle can avail in order to make its products more acceptable and popular, include
engaging in accurate and clear labeling practices, maintaining transparency in the area of
material sourcing, expanding markets for products like ready to drink tea and ready to
drink coffee and growing small food start-ups that are based in the Silicon Valley.
Threats In the view of Bharucha (2016), some of the threats that a company like Nestle
has to deal with in the running of its operations are the poor quality of water as well as the
scarcity of water, increased competition in the food and beverage industry, and the possible
Document Page
11MARKETING STRATEGIES OF NESTLE
threat that can arise from the fact that the price of coffee beans is something that can rise
significantly due to weather disasters.
2.3. Value Chain Analysis of Nestle Marketing Strategies
2.3.1. Inbound Logistics
As argued by Johnson et al. (2017), developing a strong relationship with suppliers is
something that is very important, given the fact that the support of suppliers is always
required for tasks such as receiving, storing as well as distributing products. If in-bound
logistics are not analyzed well enough, then Nestle is likely to be faced with a number of
crucial challenges during the implementation of what is termed as product development
phase. Examples of activities that are associated with inbound logistics include storage of
inputs, raw material retrieval, and the internal distribution of components and raw
materials for the purpose of production.
2.3.2. Operations
It is argued by Johnson et al. (2014), that operations such as packing, assembling,
testing and machining form an important part of the value chain process and this is
something that Nestle ought to engage in for the purpose of ensuring competitive success,
for bringing about an improvement in productivity, and for maximizing efficiency.
Operational analysis usually occurs once the raw material that is needed for production
and manufacture arrives. The increased productivity that ensues as a result of operational
analysis is something that puts Nestle in a position to increase profitability, achieve
economic growth in a consistent fashion and set a basis that is truly powerful for the
acquisition of competitive advantage.
Document Page
12MARKETING STRATEGIES OF NESTLE
2.3.3. Outbound Logistics
Outbound logistics refers to the activities that have to be undertaken for ensuring that
products get delivered to customers in an accurate and timely fashion. Some of the well-known
activities that are carried out as a part of the outbound logistics process include warehousing,
material handling, scheduling, transporting, delivering to the selected destination and order
processing. Johnson et al. (2008) point out that company such as Nestle thus needs to
analyze as well as optimize all the outbound logistical activities for the purpose of exploring
sources of competitive advantage while also achieving the objectives that are directed
towards the achievement of business growth. It is only when outbound logistics are
adequately managed in a timely and efficient manner with product delivery processes and
optimal costs that there will be a negative impact on the quality of products. It is therefore
imperative for Nestle to pay attention to activities associated with the outbound logistics
process when offering products that are perishable in nature and which require being
delivered to the end customers quickly.
2.3.4. Marketing and Sales
It is stated by Lynch (2006), that a few of the renowned marketing and sales activities
that are undertaken by Nestle as a part of the value chain process are promotional activities,
advertising, pricing, channeling and the building of relationships with important channel
members, quoting and sales force. In the view of Lynch (2006), the marketing strategies that
are usually adopted by Nestle are of a pull or push nature, the latter being dependent
largely on the business growth aims and objectives of Nestle, in addition to the brand image
of the company, the current standing of Nestle in the market and the competitive dynamics
of Nestle that enables it to steer ahead of its rivals and competitors.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
13MARKETING STRATEGIES OF NESTLE
2.3.5. Services
The post-sale services and the pre-sale services that are offered by a company such as
Nestle are seen to have a crucial role to play as far as the development of customer loyalty is
concerned. This is largely due to the fact that post-sale services are considered very important by
customers in the modern day and age. As stated by Johnson (2006), negative word of mouth
has a lot of power in an era that is so technologically advanced such as the modern era. It is
necessary for the Nestle Company to go ahead and analyze support activities if it wants to
avoid tarnishing its brand image and brand reputation consequently using it as a tool for
spreading word of mouth that is positive in nature due to timely, efficient and quick
support services.
2.4. Stakeholder Management for Nestle
The global stakeholder network of Nestle is one that ranges from the people who the
company seeks to engage with on a regular basis via company operations to people who hold
public positions and who happen to influence the activities of the Nestle Company by a
considerable degree. Examples of Nestle stakeholders include consumers, employees and
suppliers, governments, communities and non-governmental organizations, academia, trade
holders and shareholders. CSV Forum events and stakeholder meetings are conducted by Nestle
on a regular basis, that provide opportunities for the intensification of dialogue, that is built on
understanding important social issues. According to Lynch (2018), such interaction is seen to
develop the capabilities of the people who are working at Nestle while facilitating collective
action and promoting both trust as well as mutual respect at the same given time. Finlay
(2000), argues that the outcomes of the dialogues that are held on a regular basis with
stakeholders are then submitted to the senior management of the Nestle Company via a
Document Page
14MARKETING STRATEGIES OF NESTLE
body that is known as Nestle in Society Board. Stakeholder community surveys are also
conducted by the top level management of the Nestle Company on an annual basis. The
annual survey is conducted on key opinion leaders worldwide with the aim of arriving at an
understanding of evolving views and perspectives on the reputation of the company and the
issues that are faced by the company. De-Wit (2017) states that it is crucial to keep in mind
the fact that most of the stakeholder projects that are undertaken by Nestle are those that
are based on collective action with the view of building capacity and also establishing a
strong consensus on ground.
2.5. Analysis of Nestle Marketing Strategies using ANSOFF Matrix
Nestle is a company that works in many different competitive markets. According to the
Ansoff Matrix, there are four important methods that can be followed on the part of business
enterprises if they want to achieve their aims and objectives in a timely and effective manner.
Scrinis (2016), states that the first of these is what is termed as market penetration strategy.
As per this method, costs have to be brought down on the part of organizations so that they
can enter the market and take hold of the market at a more rapid pace. For instance, when
Nestle made its entry into the Pakistan market, it decided to make its product Milo (a
health drink) available at rates that are extremely reasonable thus attracting the immediate
attention and interest of its target audience in Pakistan. The second important stage as
outlined by the Ansoff Matrix is market development. This is the stage when the current
product or service offered by a company is merged with another business or enterprise (Scrinis
2016). As argued by Tiagnas et al. (2019), market development is something that Nestle was
seen to engage in when it propelled the establishment of Nescafe Espresso in the country of
China or when it took its product Kitkat to the most remote of markets. The third crucial
Document Page
15MARKETING STRATEGIES OF NESTLE
stage as mentioned in the Ansoff Matrix is the stage that is known as Product Development.
This is a stage when a business organization remains in its own domain while extending product
offerings at the same given time. As argued by Johnson et al. (2014), Nestle was seen to
engage in product development when it chosen to remain in the market that it had entered
into in Europe, while venturing into nutritional and health related products and while also
extending at the same given time, its product offerings. Diversification forms the fourth and
final stage of the Ansoff Matrix. In the view of Johnson et al. (2014), a diversified portfolio
was created by Nestle when it invested in a cosmetic organization by the name of L’Oreal
and when it also became a primary stakeholder in a number of pharmaceutical
organizations located in different parts of the world.
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
16MARKETING STRATEGIES OF NESTLE
Source - https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-matrix/
2.6. Analysis of Nestle’s Marketing Strategies using Porter’s Generic
Competitive Strategies
A number of competitive strategies have been suggested by Michael Porter for the
establishment of competitive advantage. These are cost leadership, cost focus, differentiation and
differentiation focus. In order to grow and develop in a competitive market environment, it is the
product differentiation strategy that Nestle has essentially focused on, with an adequate market
segmentation process being in place for this purpose. As stated by Tiagnas et al. (2019), an
Document Page
17MARKETING STRATEGIES OF NESTLE
extensive range of products is made available by the Nestle Company, on the basis of age,
climate, occupation as well as season. For instance, coffee is a product that the Nestle
Company produces in order to meet the needs of busy people who require something hot
and strong to drink, that will help them to use their mental faculties in the best possible
way even when they feel tired, exhausted or fatigued. Specifically, some of the diversified
coffee products that Nestle has ended up introducing in the market include Super
Premium, Every Day, Café Menu and Decaf. Nes-Quick, a popular chocolate drink was
also introduced by Nestle as part of its diversification strategy with regard to coffee
products. In the view of Kraak et al. (2019), this is a chocolate milk product that is meant
for consumption by Nestle users who are not fond of drinking either tea or coffee but are
on the lookout for a hot beverage that they can consume for comfort. Nestle has also
diversified quite a lot with regard to its baby food products. According to Kraak et al.
(2019), while Nespray is the most well-known baby food product that is associated with the
Nestle brand, Nestle has established competitive advantage by catering to the nutritional
needs of babies who are specifically in the age group of one to seven months by coming up
with a product that is known as Lectogen 1. Nestle has engaged in product differentiation
with regard to its Noodle products as well by coming up with Maggie soup noodles of many
different varieties. Differentiation is also exercised by Nestle in terms of distribution area
and channel and this it does by reaching out to its target audience via market salesman and
transformation. Differentiation is additionally pursued by the Nestle Company with regard
to logo and image, ensuring in every possible way that the brand logo and the brand image
are those that are completely different from the image and the logo of the competitor
companies. Most of the employees who are on the payroll of the Nestle Company are people
Document Page
18MARKETING STRATEGIES OF NESTLE
who are well trained and who are well educated at the same given time. In other words, the
product differentiation strategy of Nestle is one that is enabling the company to run in a
successful manner.
According to Antilla-Huges et al. (2018), there is a good deal of differentiation that is
followed by a company such as Nestle when it comes to providing services to customers.
Twenty four hour services are offered by the company via hotline services and there is a
quality checking service that is also in place and which makes sure of the fact that the
services which customers are provided with are up to the mark. Hence the product
differentiation strategy of Nestle is one that can be said to account for the high position that
the company holds in the market.
Source - http://www.gemanalyst.com/porters-generic-strategies/
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
19MARKETING STRATEGIES OF NESTLE
2.7. Using the Suitability Model to Understand the Success of Nestle’s
Corporate Level Marketing Strategies
With regard to suitability, it can be stated that the marketing strategy of Nestle as has been
discussed in detail above is one that addresses key circumstances and opportunities in which the
business is seen to operate. The demand for healthy and nutritious products is something that is
rising with every passing day and what Nestle has demonstrated of late is its ability to innovate
and to renovate through the research and development program that it follows for this purpose.
The value chain of Nestle, the generic strategies of Nestle and the marketing penetration and
development techniques as utilized by Nestle are linked quite closely to one another. The Nestle
Company is doing rather well by connecting its value chain activities with its differentiation
strategy as in this process of doing so it is creating a number of core competencies. What makes
the strategy that is followed by Nestle a hundred percent feasible is the fact that the company
disposes of enough capabilities and resources in order to implement the strategy in a suitable
manner. The long history of financial know-how and financial power that the company is
serviced by is what helps to apply its strategies in a successful manner in the global industry.
Document Page
20MARKETING STRATEGIES OF NESTLE
The suitability model of niche marketing can be utilized to understand the success of
Nestle’s corporate level marketing strategies with regard to a specific product, Nescafe. Nestle
has come up with a wide range of sub products under the main banner of Nescafe, the two most
well-known of these being Nescafe Gold and Nescafe Classic. In the view of Avery and
Zaltman (2019), Nescafe Gold is a product that comes with a sophisticated and milky taste
whereas Nescafe Classic is slightly stronger in terms of composition and taste and it caters
to people who are in need of strong coffee every morning and night, and at times may be
considered as a good substitute for black coffee. Both the different product sub types have
proven to be largely successful for Nestle primarily due to the fact that both Nescafe Gold
and Nescafe Classic are suitable for their respective target audience. According to
Bharucha (2016), Nescafe Gold does a good job of catering to customers who are on the
lookout for coffee that is light in terms of taste, which they can easily digest and which they
drink for pleasure rather than for getting a kick or to bring about an improvement in their
concentration skills. Antilla-Hughes et al. (2018), states that Nescafe Classic on the other
hand meets its purpose of catering specifically to customers who demand strong coffee at
any given time of the day or night and who require strong coffee in order to be able to
carry out their day to day chores with success and apt concentration. According to
Bharucha (2016), as a result the niche products that Nestle has come up with, with respect
to the main product Nescafe are those that are highly suitable for their respective target
audience and are therefore much in demand at all times of the year, with stocks having to
be replenished on a regular basis. As argued by Ambrose and Moses (2018), the niche
products of Nescafe Gold and Nescafe Classic are also suitably priced and are definitely
within the budgetary means of the target audience of both the niche products. The target
Document Page
21MARKETING STRATEGIES OF NESTLE
audience for Nescafe Gold as well as Nescafe Classic, are teachers, students and working
professionals with the target audience for the latter being people who are slightly busier
than the former and who are in need of strong beverages like coffee to keep themselves
pepped up throughout the course of a busy day.
Conclusion
The analysis of Nestle’s marketing strategies using the many different models that have been
mentioned above, goes to show that the innovative techniques applied by Nestle in the marketing
of its products and services and the effort and emphasis that is placed by the company on
research and development activities is what has gone a long way in ensuring the success of such
marketing strategies in the global market place. Nestle takes care to ensure that its products and
services are innovated with from time to time and that line extensions are added and new
varieties of existing products are development, so that customers do not feel jaded or bored when
consuming any of Nestle’s products. The food and beverage products such as Nescafe and baby
food products like Nespray are innovated with quite a bit so as to continue catering to its target
population in the manner that is desired. The leadership of the Nestle Company is one that has
placed a lot of value to uniqueness in product identity and composition, as well as in the
marketing of products, as a result of which Nestle products always have and continue to stand
out in the global market place today.
tabler-icon-diamond-filled.svg

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
22MARKETING STRATEGIES OF NESTLE
References
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
(https://www.academia.edu/39478455/IMPACT_OF_STRATEGIC_ORIENTATION_ON_ACA
DEMIC_ENTREPRENEURSHIP_AN_EMPIRICAL_STUDY_OF_HIGHER_EDUCATION_I
N_IRAQ)
Anttila-Hughes, J.K., Fernald, L.C., Gertler, P.J., Krause, P. and Wydick, B., 2018. Mortality
from Nestlé’s marketing of infant formula in low and middle-income countries (No. w24452).
National Bureau of Economic Research.
Appiah-Adu, K. and Amoako, G.K., 2016. The execution of marketing strategies in a
developing economy: A case study of selected market leaders. African Journal of Economic and
Management Studies, 7(1), pp.9-29. https://www.nber.org/papers/w24452.pdf
Avery, J. and Zaltman, G., 2019. Understanding the Brand Equity of Nestlé Crunch Bar (B):
Data Analysis. https://www.hbs.edu/faculty/Pages/item.aspx?num=55569
Bharadwaj, S.S., Chauhan, S. and Raman, A., 2015. Impact of knowledge management
capabilities on knowledge management effectiveness in Indian organizations. Vikalpa, 40(4),
pp.421-434. (https://journals.sagepub.com/doi/pdf/10.1177/0256090915613572)
Bharucha, J., 2016. Cadbury Vs Nestle: A Study of The Chocolate War. International Journal of
Research in Social Sciences, 6(9), pp.609-620.
http://www.academia.edu/download/55869322/IJMRA-10498.pdf
Document Page
23MARKETING STRATEGIES OF NESTLE
Bish, A. and Becker, K., 2016. Exploring expectations of nonprofit management
capabilities. Nonprofit and Voluntary Sector Quarterly, 45(3), pp.437-457.
https://journals.sagepub.com/doi/abs/10.1177/0899764015583313
David, F.R. and David, F.R., 2017. Strategic Management: Concepts: a Competitive Advantage
Approach. Pearson. (https://norek.pw/00-03-34.pdf)
De Wit, B. 2017. Strategy : An International Perspective. 6th. Cengage.
Demirel, P. and Kesidou, E., 2019. Sustainability‐oriented capabilities for eco‐innovation:
Meeting the regulatory, technology, and market demands. Business Strategy and the
Environment. (https://onlinelibrary.wiley.com/doi/abs/10.1002/bse.2286)
Finlay, Paul N. 2000. Strategic management: an introduction to business and corporate strategy.
1. Financial Times/Prentice Hall.
Grant, R., Jordan, Judith.. March 2012. Foundations of Strategy. Wiley-Blackwell.
https://books.google.co.in/books?
hl=en&lr=&id=uCFiBwAAQBAJ&oi=fnd&pg=PR9&dq=Grant,+R.,+Jordan,+Judith..
+March+2012.+Foundations+of+Strategy.+Wiley-
Blackwell&ots=IIg71LPmRp&sig=_rmBK43Obkofj-8Pxn8BFpJMLO4
Johnson, Gerry, Scholes, Kevan, Whittington, Richard. 2008.. Exploring corporate strategy :
text & cases. 8th ed.. Financial Times Prentice Hall. http://65.tronberg.de/johnson-scholes-
whittington-exploring.pdf
Document Page
24MARKETING STRATEGIES OF NESTLE
Johnson, Gerry, Whittington, Richard, Scholes, Kevan, Angwin, Duncan, Regner, Patrick. 2017.
Exploring strategy : text and cases. 11th. https://www.amazon.com/Exploring-Strategy-Text-
Cases-11th/dp/1292145129
Johnson, Gerry, Whittington, Richard,, Angwin, Duncan,, Regner, Patrick,, Scholes, Kevan.
2014.. Exploring strategy : text and cases. 10th ed.. Pearson. https://books.google.co.in/books?
id=LqpfDwAAQBAJ&pg=PR26&lpg=PR26&dq=Johnson,+Gerry,+Whittington,+Richard,,
+Angwin,+Duncan,,+Regner,+Patrick,,+Scholes,+Kevan.+2014..+Exploring+strategy+:
+text+and+cases.+10th+ed..
+Pearson.&source=bl&ots=UxszbbwVV7&sig=ACfU3U1E6ofZgxlN5RARyrd1Vfg8zK7S8g&
hl=en&sa=X&ved=2ahUKEwifzona9r3jAhXBR30KHcQbC9EQ6AEwAHoECAAQAQ
Johnson, Gerry. 2006. Exploring corporate strategy : text and cases. 7th ed.. Financial Times
Prentice Hall. This edition is still valuable. http://www.mim.ac.mw/books/Johnson%20and
%20Scholes%20Exploring%20Corporate%20Strategy,%20Text%20and%20Cases.pdf
Johnson, Gerry., Whittington, Richard,, Johnson, Gerry. 2011.. Exploring strategy. Text &
cases.. 9th ed.. Financial Times Prentice Hall. https://books.google.co.in/books?
id=LqpfDwAAQBAJ&pg=PR4&lpg=PR4&dq=Johnson,+Gerry.,+Whittington,+Richard,,
+Johnson,+Gerry.+2011..+Exploring+strategy.+Text+%26+cases..+9th+ed..
+Financial+Times+Prentice+Hall.&source=bl&ots=Uxszbbw-
Zf&sig=ACfU3U2CpUYsTmpfOtfqXssXvk6CbjCM9g&hl=en&sa=X&ved=2ahUKEwil54mP-
b3jAhVMr48KHeBDCE0Q6AEwAHoECAEQAQ
Kraak, V.I., Rincón‐Gallardo Patiño, S. and Sacks, G., 2019. An accountability evaluation for
the International Food & Beverage Alliance's Global Policy on Marketing Communications to
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
25MARKETING STRATEGIES OF NESTLE
Children to reduce obesity: A narrative review to inform policy. Obesity Reviews.
https://onlinelibrary.wiley.com/doi/abs/10.1111/obr.12859
Lynch, Richard L. 2009. Strategic Management. 5. Financial Times Prentice Hall
https://books.google.com/books/about/Strategic_Management.html?id=O0WkkQEACAAJ
Lynch, Richard L.. 2006. Corporate strategy. 4. Financial Times Prentice Hall.
https://gpreview.kingborn.net/797000/b90fbf721f834fb0b1206302a41adbea.pdf
Lynch, Richard L.. 2018.. Strategic management. 8th. Pearson. https://books.google.co.in/books?
id=i71dDwAAQBAJ&pg=PT788&lpg=PT788&dq=Lynch,+Richard+L..
+2018..+Strategic+management.+8th.
+Pearson.&source=bl&ots=gGnbveJjii&sig=ACfU3U2jOXkF6duHoYxG6wpNYoIBcye3mQ&
hl=en&sa=X&ved=2ahUKEwiI6pz1-b3jAhUEQH0KHYnrDqMQ6AEwAHoECAYQAQ
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
(https://onlinelibrary.wiley.com/doi/abs/10.1002/9781405164085.ch2)
Michael, S., Storey, D. and Thomas, H., 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset, pp.45-
65. (https://onlinelibrary.wiley.com/doi/abs/10.1002/9781405164085.ch3)
Mintzberg, Henry, Ghoshal, Sumantra, Quinn, James Brian. 1999. The strategy process. Prentice
Hall. https://trove.nla.gov.au/work/6653064
Document Page
26MARKETING STRATEGIES OF NESTLE
Morschett, Dirk, Schramm-Klein, Hanna, Zentes, Joachim. 2015. Strategic International
Management : Text and Cases. 3rd. Springer. https://link.springer.com/content/pdf/10.1007/978-
3-658-07884-3.pdf
Moses, S. and Ambrose, C., 2018. A Study on Impact of Marketing Strategies on Consumer
Behaviour towards FMCG sector with reference to Nestle India Ltd and Britannia Industries
Ltd. Sumedha Journal of Management, 7(2), pp.190-198..
http://search.proquest.com/openview/e6c6a390742453065f0b5d61716b6855/1?pq-
origsite=gscholar&cbl=1936345
Nestle, G. 2017. [online] Nestle.com. Available at:
https://www.nestle.com/asset-library/documents/library/documents/annual_reports/2017-annual-
review-en.pdf [Accessed 27 Jul. 2019].
https://www.nestle.com/asset-library/documents/library/documents/annual_reports/2017-annual-
review-en.pdf
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2017. Human resource management:
Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
(https://www.researchgate.net/post/What_would_be_the_best_approach_to_support_leaders_in_
processes_of_change_and_organizational_development_through_eLearning)
Scrinis, G., 2016. Reformulation, fortification and functionalization: Big Food corporations’
nutritional engineering and marketing strategies. The Journal of Peasant Studies, 43(1), pp.17-
37. https://www.tandfonline.com/doi/abs/10.1080/03066150.2015.1101455
Document Page
27MARKETING STRATEGIES OF NESTLE
Thompson, John L., Scott, Jonathan M., Martin, Frank. 2014.. Strategic management :
awareness and change. Cengage Learning. https://www.amazon.com/Strategic-Management-
Awareness-Frank-Martin/dp/1408064995
Thompson, John L.,, Martin, Frank. c2010.. Strategic management : awareness & change.. 6th.
South-Western Cengage Learning. https://www.amazon.com/Strategic-Management-Awareness-
Frank-Martin/dp/1408064995
Tiganas, A., Boghean, A. and Vázquez, J.L., 2019. Behavior Change and Nutrition Education for
Teenagers: Nestlé Social Marketing “Healthy Kids Programme” in India. In Social Marketing in
Action (pp. 271-282). Springer, Cham. https://link.springer.com/chapter/10.1007/978-3-030-
13020-6_18
Wang, Y. and Rajagopalan, N., 2015. Alliance capabilities: review and research agenda. Journal
of management, 41(1), pp.236-260.
(https://www.researchgate.net/profile/Yongzhi_Wang11/publication/278400547_Alliance_Capa
bilities_Review_and_Research_Agenda/links/5638fd6808ae2da875c79e4f/Alliance-Capabilities-
Review-and-Research-Agenda.pdf)
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy (p. 55). Boston: pearson.( https://testbank24.com/pdf/Solutions-Manual-
Strategic-Management-and-Business-Policy-Globalization-Innovation-and-Sustainability-14th-
Edition-Wheelen.pdf)
chevron_up_icon
1 out of 28
circle_padding
hide_on_mobile
zoom_out_icon
logo.png

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]